Notice Regarding Disposal of Treasury Stock Accompanying Introduction of Stock Compensation Plan for Management-Level Employees

Overview of Treasury Stock Disposal

Mitsubishi Pencil Company, Limited resolved to dispose of 82,800 shares of treasury stock at 2,437 yen per share on May 15, 2026. The total disposal amount is 201,783,600 yen, and the disposal recipient is Sumitomo Mitsui Trust Bank, Limited (Trust Account). This disposal relates to the introduction of a stock compensation plan for management-level employees and will be executed based on the resolution of the Board of Directors on November 27, 2025.

Impact and Purpose for Shareholders

This treasury stock disposal is associated with the establishment of a trust for a stock compensation plan intended to enhance management-level employees’ sense of belonging and promote their engagement in corporate management. The number of shares disposed corresponds to 0.14% of the total 60,042,592 shares outstanding, with the dilution impact deemed minor. The trust period is planned from May 15, 2026 to the end of February 2029, and voting rights will be exercised based on instructions from the trust administrator.